Secrets of Professional Liability Insurance Savvy Errors Solutions
Key Features of Professional Liability Insurance
Professional liability insurance policies can vary significantly, but typically they cover legal defense costs, settlements, and judgments. Some policies also offer coverage for issues such as libel, slander, and breach of contract. It's crucial to carefully review policy terms to ensure comprehensive coverage. For instance, some policies may cover past work, known as "prior acts" coverage, which can be crucial if you're changing insurers or starting a new policy2.
Cost Considerations and Savings Opportunities
The cost of professional liability insurance can vary based on several factors, including your industry, the size of your business, and your claim history. On average, small businesses might pay between $500 and $1,000 annually for coverage, but this can increase for high-risk professions3. To find competitive rates, it's wise to search options and compare quotes from multiple insurers. Many providers offer discounts for bundling policies or for professionals with a clean claims history.